Stelco rally reveals fury at bondholders

Stelco rally reveals fury at bondholders

A seemingly ordinary rally for embattled Canadian steelmaker Stelco Inc. turned into a verbal assault on Stelco's bondholders who many feel are holding the company's future hostage. The rally was a mix of union members along with their families and friends, Stelco pensioners, as well as Stelco executives including CEO and president Courtney Pratt. They gathered to show their support for Stelco and to speak out on what they see as a concerted effort by bondholders to cash in on the company's riches while simultaneously casting pensions and jobs aside. United Steelworkers Local 8782 president Bill Ferguson said the rally and sentiments expressed therein sent the “right message” while Courtney Pratt, careful to avoid criticizing the bondholders openly, praised the progress and cooperation forged between the company and its workers. Legally insolvent Hamilton-based Stelco Inc. has been mired in its restructuring ordeal for nearly two years and has seen a plethora of problems, delays, and disappointments. Recently there has been significant progress as the company and union have seemingly clicked, however, the bondholders, who hold about $275 million (Canadian) of Stelco's debt would receive a combination of secured and unsecured notes, shares or equity in Stelco from the restructuring deal. The bondholders believe this is far from enough and have threatened to scuttle the deal which would allow Stelco to finally emerge from bankruptcy on November 15.